.The Russell 2000 may possess a profits problem.Though the small-cap mark got 10.1% in July, it is actually lost around 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi earns the unstable relocate to the mark's overall arrangement, along with an estimation coming from Beauty Global revealing 40% of those companies have adverse incomes." [Financiers] have actually generally resigned themselves to the fact that by remaining in the Russell 2000, I'm merely going to have to take the good with the negative," the agency's principal ETF planner informed CNBC's "ETF Upper hand" this week.To stay away from the earnings nuisance, Baiocchi proposes real estate investors focus on quality providers, considering additional discerning exchange-traded funds such as his firm's mountain range O'Shares U.S. Small-Cap High Quality Reward ETF Allotments (OUSM)." The suggestion is quality business that pay out as well as develop their rewards, as well as significantly, have much less dryness than their peers," he stated. "It enables consultants and also entrepreneurs who have actually found small limits go sideways for 5 years to be designated to a group that is actually dragged." Besides its profits display screen, the fund has simply 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its leading 3 holdings are Tradeweb Markets, Juniper Networks as well as Old Republic International, each resting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" outruning the Russell by much more than 2 amount points in that time.Disclaimer.